Various Measures

The committee will now come to order and a quorum is present. Now without objection the chair is authorized to declare a recess of the committee at any time.

So.

Uh, as required by house rules, a copy of the legislative measures have been made available to the members, and the public, these twenty four hours in advance. Without objection, the committee will vote electronically in accordance with committee rules and regulations developed by the House Committees on Rules and Administration. And before I say any more, I want to make a statement for the public. Uh, I think it's tomorrow. We are going to Baltimore. What state is that in? America.

Great state of America.

And the and and the big O and I are gonna have a bipartisan

First.

uh uh round table with business leaders in your community, I think. Isn't that right?

Yes, sir.

We're looking forward to it.

Looking like wise things.

OK, you bet. Uh, I now recognize myself for opening remarks. Uh, good morning to everybody and welcome, and today we will mark up nine important bills that support small businesses across this country. Together these bills address permanent uh issues facing America's small businesses today and reflect our bipartisan commitment to create an environment where Main Street can grow and Main Street can thrive. As Chairman, I am proud of the work being done in the committee the administration's efforts in strengthening the rule of small businesses, uh the role of small businesses in the American economy and around the world. This package of bills will strengthen oversight of the SBA, support domestic manufacturing and on-shoring efforts, modernize and improve the SBA's five O four lending program. These bills will also enhance uh consistency in disaster response efforts and insure small businesses are paid on time when construction contract terms are changed. Finally, they will give small business the tools they need to protect themselves from foreign cyber threats, IP theft, and other malicious activity. I'm proud of the continued bipartisan efforts that led to today's mark-up. These efforts have helped secure the passage of thirty-nine small business bills out of the House this year, many of which still await the famous Senate's consideration. Now, I'm eager to continue working with all my colleagues to pass meaningful legislation that empowers small businesses and strengthens our communities. With that, I yield to my friend and the distinguished ranking member from New York, Miss Velasquez, for her opening remarks.

Thank you, uh, Mister Chairman, for convening this Mark-Up today. I appreciate your adding HR one zero seven three seven five, the five O four modernization and small manufacturing enhancement act to the agenda today. HR one zero three seventy-five is a priority for me and I I look forward to working with you to get it enacted into law before I get the hell out of here. I plan to s- lend my support to all nine bills under consideration today. Your collaboration has been instrumental in bu- building broader support for this mark-up. Given that this may be our last mark-up, of the Congress, I would like to thank you for your dedication to working side by side. And while we haven't always seen eye to eye on all the issues, we have worked together on behalf of Main Street. Thank you, Mister Chairman, I yield back.

Thank you.

OK. Uh, does any other member seek recognition for the purpose of making an open statement?

So, ten minutes, we have eight minutes left.

Threats to Main Street Act of two thousand and twenty-six, led by myself and Mister Tramm. The clerk will report the bill.

H R one zero three two nine, a bill to

Without objection, H R one O three two nine is considered as read and open for the amendment. I now recognize myself to speak on this legislation. First, I want to thank Representative Tran from the great state of California for cosponsoring this bipartisan bill. Small businesses are essential to the American economy. They create ideas, they create jobs, and build economic strength. That is exactly what our foreign adversaries are increasingly seeking to exploit. Small businesses are on the front lines of a threat most of them never see coming. The Chinese Communist Party and other foreign adversaries are stealing American innovation compromising our supply chains flooding American markets, with counterfeit goods made with forced labor, all to undermine U. S. economic and national security. The FBI estimates that the counterfeiting pri- uh, piracy and trade secret theft costs the U. S. economy between two hundred and twenty-five billion dollars and six hundred billion dollars every single year. Small businesses bear a disproportionate share of the cost, unlike large corporations they lack in-house counsel, cyber security resources, or threat intelligence teams to protect themselves. The tactics are not limited to hacking. Small businesses entering commercial relationships with foreign partners often have no way of knowing whether they're dealing with an entity tied to a foreign adversary until the damage is already done. So by then, the intellectual property's gone, trade secrets are compromised, and on their technology is transferred overseas. My bill, the Combating Foreign Threats to Main Street Act of twenty twenty six, gives a small business the tools they need to fight back. It directs the SBA to work with a our national security agencies to provide resources to help Main Street recognize foreign threats and protect American jobs innovation and economic security. This bill will bring the SBA into a whole off-government approach to combating uh malicious activity from the CCP and other foreign adversaries by taking a practical approach to a serious problem our adversaries are working to undermine uh rule-based order and weaken America by any means necessary, including by targeting small businesses. This bill will ensure Main Street better uh, and and and understands the threats they face and gives them the tools to recognize them before they are victims. I urge my colleagues to vote yes on my bill, H R ten, or three two nine. With that, I yield back. Uh, and I now recognize Mister Tran from the great state of California and my friend to speak on this legislation.

Thank you, Mister Chairman, for the opportunity to discuss an essential piece of legislation today. our combating foreign threats to Main Street Act. I am proud to co-lead this with you. This bipartisan bill would direct a small business administration to help small businesses protect themselves from cybercrime, intellectual property theft, and counterfeit goods, when they do business with a country like China. Because of how our supply chains and global economy work, doing business with a country like China is normal. But it's not a secret that the Chinese Communist Party is waging organized campaign to undercut American global influence and still American innovation. The threat is real and it's expensive. The S- the FBI estimates that intellectual property theft linked to foreign adversaries costs American businesses between two hundred and six hundred billion every year and roughly eighty percent of economic espionage lawsuits in this country prosecute conduct that benefits the CCP to many small business owners that don't have a general counsel for or a cyber security c- uh team they don't have the resources to spot a predatory joint venture or a compromised supply chain so bad behavior from foreign adversary poses a real threat to my district which is home to some of the most dynamic small business manufacturers biotech firms and tech startups in southern california my district is also home to one of the largest most diverse asian-american communities in the country including many chinese americans fighting the ccp is not the same as doubting our Asian American neighbors. To be clear, this bill helps protect against the conduct allowed by foreign governments. It does not single out any ethnicity or national origin. I will watch closely to make sure it stays that way. Instead, the combating foreign threats to Main Street Act will ensure that America's small business owners and entrepreneurs have the clear evidence-based resources they need to protect their businesses from threats of foreign adversaries like the CCP and safeguard their intellectual business property. I am proud to co-lead this bill and I thank Chairman Roger Williams for his partnership. I urge my colleagues to support this important bipartisan bill. Thank you and I yield back.

Gentleman yields back. Are there any of the members who wish to be recognized for a statement on the bill?

Mister Chairman.

Recognize uh Mister Muser for a statement.

Well, thank you, Mr. Chairman. Um, HR one zero three two nine, the Combating Foreign Threats to Main Street Act. Uh, I commend the chairman, uh, for, um, uh, introducing this bill. This bill would require the SBA and agencies throughout the federal government to develop educational materials to help American small businesses identify and address and report foreign-linked fraud and economic threats, especially from our adversaries, such as China and Russia. As Chairman of the Oversight and Investigation Subcommittee on Financial Services, I've led the committee's efforts in combating consumer fraud and scams. As schemes become more elaborate and are increasingly perpetrated by transcontinental criminal organizations, TCOs, we must remain vigilant and address threats as they evolve. This legislation complements the efforts by ensuring small businesses have the information and resources they need to recognize and protect themselves from foreign threats. These these threats can take many forms, including intellectual property theft, cyber intrusions, counterfeit goods, illicit trade practices, and predatory investments. No business is too small to be a target, yet many small businesses lack the resources or expertise to recognize these threats or know where to turn for help. So, HR one zero three two nine takes a straightforward approach by giving small business the resources, the tools they need to protect their businesses, their data, and their intellectual property. By strengthening awareness of transcontinental fraud and economic threats on Main Street we can help protect the broader American economy and our national security so I certainly urge my colleagues to support this legislation, and I yield back.

Uh, gentlemen, yields back, are there any other members who wish to be recognized for statement on this bill? OK, seeing none, I'd like to recognize the ranking member to speak on the bill.

Thank you, Mr. Chairman. I commend you, Mr. Trump, for your attention to this. issue. This bill directs the SBA to educate small businesses on foreign adversary conduct that harms them and how to avoid and respond to such conduct. Many of our nation's adversaries, like Russia and North Korea, are pariet states shunned by the world for their military aggression and dictatorships. And their state-run firms often employ heinous underhanded practices like espionage, counterfeiting, and non-market investment. Sm- some small businesses have fallen victim to these tactics. They have been trapped in predatory arrangements, had intellectual property stolen, and unknowingly broken the law. That is why it's important to raise entrepreneurs' awareness about these practices. That said, our nation's top top strategic competitor, the People's Republic of China, is our largest trading partner after our ally, Mexico. American small businesses often partner with PRC companies on benign mutually beneficial activities with no impact on our national security. Main Street America reaps lower costs, greater innovation, and access to vast sales markets when it works with PRC firms on low stakes matters. So any new policy or program involving the PRC must be balanced and fully account for the nuances of our complicated relationship. I will also be remiss if I did not note that businesses elsewhere abroad also frequently employ the practices this bill highlights. Further action is needed to ensure small firms are protected from IP theft, counterfeiting and forced labor in all countries, not just the ones the present dislikes. I support sending this measure to the full house so it can receive cursor careful and deliberative consideration and the appropriate scrutiny from the rest of our colleagues with that, I urge my colleagues to support the bill.

Channel A goes back. Does any other member wish to offer an amendment? Alright, seeing none, the question now occurs on ordering H R ten O or ten thirty two nine reportedly favorably to the house all those in favor say aye all those opposed say no.

Aye.

Aye.

Depending the chair of the ayes have it, H R one O three two nine is agreed to.

Mister Chairman,

What do you seek recognition for?

Can I ask for a recorded vote, please?

Recorded vote has been requested, a roll call vote is ordered, persuading to committee rule thirteen and house l- rule eleven. Further proceedings on this bill are now postponed. The committee now moves to consideration of H R forty six fifteen, the small business payment for performance act of twenty twenty five, introduced by Representative Stauber. v. C. Fitzpatrick and Norcross, along with uh Representative Skuldin as the committee co-lead. The clerk will report the bill.

H. R. forty-six fifteen, a bill to amend the small business center.

Without objection, H. R. forty-six fifteen is considered as read and open for amendment. The bill's sponsor, Representative Stauber, has an amendment in the nature of a substitute at the desk. The amendment has been distributed in advance. The clerk will report the amendment.

Amendment in the nature of a substitute to H. R. forty-six fifteen, offered by Mister.

Without objection. Uh, the amendment will be considered as read and will serve as a base text for the purpose of further amendment.

Yes, I'm sure. Mm.

I now recognize Mister Stauffer from the great state of Minnesota to speak on his bill and amendment.

Thank you, Mister Chairman, uh I rise in support of my bill H R forty six fifteen, the small business payment for performance act, and I wanna recognize Rep- uh Representative Skelton from Michigan to be uh for my co-lead. Uh, small businesses are the backbone of our economy. They create jobs, support families, and keep communities across Minnesota and our entire country running. When small business, uh, when small businesses rather contract with the federal government, they should not be forced to carry the financial burden when the government makes a change to a project. Unfortunately, that is often the case, leading to burdensome costs on small businesses and often preventing many small businesses from contracting with the federal government in the first place. My bill addresses this matter. It's a simple fix, but would have a huge impact on small businesses, along with families that depend on a paycheck week in and week out from a small business. Here's the problem at hand, a small contractor lands a federal job and gets to work. Then, part way through the gov- part way through the government changes the scope of the project. Those changes can mean additional labor, materials, equipment, and other costs that the contractor did not originally plan for. The contractor can request what is known as an equitable adjustment. to cover those added costs. But that process can take time, many times, months. For a larger company waiting for that payment, they may be able to manage that. But for a small business, it can be the difference between making payroll and missing it. It can mean, excuse me, it can mean putting expenses on a line of credit, delaying another project, or telling a subcontractor, subcontractor that they have to wait to get paid.

Closing.

That is not right. And these are not just numbers on a balance sheet. These are hardworking Americans, construction workers, electricians, plumbers, equipment operators, truck drivers and the small business owners who signed their paychecks. When the federal government directs a small business to perform additional work or changed work, that business should not be on the hook for covering the added cost while it waits for payment. That is why the Small Business Payment for Performance Act, we prior was agencies to provide an interim payment of at least fifty percent of the estimated additional cost after receiving a qualified request for an equitable adjustment. My bill also ensures the appropriate portion of that payment flows down to the subcontract subcontractors rather doing the work and facing those additional costs. This is a common sense change in solution. Small businesses should be paid in a timely manner for the work they do on behalf of the federal government. Our small businesses and contractors compete for federal projects, They hire American workers and do important work in communities across our country. When a job changes, they should not be left carrying the added cost on their own while they wait to be paid. Again, this bill establishes a simple change, but it would be, but it would be, have a huge impact on our small businesses and the hardworking people that they employ in our country. And if we can do anything to assist small businesses and hardworking folks in this country we should do it. That's why this bill is so important to pass. I want to thank Chairman Williams and the committee for working with me on this legislation and for bringing it forward today. I urge my colleagues to support H. R. forty-six fifteen and Mister Chair, I yield back.

Uh, gentlemen, yields back, are there any oth- uh any other members who wish to be recognized for a statement? Seeing none, I'd like to recognize the ranking member to speak on the bill and the amendment.

Thank you, Mister Chairman. I appreciate the work of this bill's sponsors, Mister Stober and Miss Colton, to bring it before the committee today. This bill is a well-intended attempt to address a consistent and prominent issue for small businesses, timely payments and cash flow. Cash flow is critical for small firms. It is how they meet, payroll, invest, grow and hire, and keep their doors open in both good times and bad. As the committee continues to craft legislation to ensure small businesses are paid in a timely manner, we must also ensure the text matches the intent. While the A A and S make improvements, additional changes are necessary. I continue to have concerns regarding the bill's alignment with existing policies and requirements. that vary across federal agencies, CBO's estimated costs, and the lack of definition and clarity for the terms and timelines. If left unaddressed, this issue may cause implementation challenges and delays. Additionally, if SBA moves forward with its ill-advised proposal to redefine what is a small business government contractor, current authorities, like those proposed in this bill, will need re-evaluation. While all contractors should be paid in a timely manner, this law has been designed to address the disproportionate impact of limit limited cash flow on small firms. If they are now applicable to firms with very large contracts, thousands of employees and hundreds of millions in annual revenue. The consequences and the cost will change. I urge my colleagues to support HR forty-six fifteen today as amended. I hope we will continue to make improvements moving forward that resolve outstanding issues and ensure implementation matches intent, a yield back.

Uh, gentlelady yields back. Uh, uh, I, uh, thank you for that. I now recognize myself for remarks on this bill and the amendment. Uh, I'd first like to thank our colleague, Mister Stauber, from the great state of Minnesota for introducing this bill, and I'd also like to thank Miss Goulton, uh, for co-leading. Uh, when a federal agency changes a construction contract, a small business, uh, they don't they don't get to wait. Uh, their work must be still be done and and bills must be paid and yet the contractor may wait months or even sometimes more than a year to get reimbursed for this additional work. So while the government moves forward, small businesses are left carrying the costs for a contract or operating on thin margins, that can delay and have real consequences. A large company may be able to carry that cost and a small contractor can't.

Oh.

And if that happens enough times, then small businesses may decide federal contracting, it just isn't worth the risk. That means fewer small businesses competing for contracts and ult- ultimately higher costs in the long run. This bill, the Small Business Payment Performance Act of twenty twenty five, requires agencies to pay at least fifty percent of the estimated cost of the change up front, while leaving the final amount to be negotiated, and that payment then flows down to the subcontractors who incurred the cost. This bill is a simple way to make small businesses to make sure small businesses aren't asked to finance the government's changes. I urge my colleagues to vote yes on H R forty-six fifteen. I yield back. And does any uh member wish to offer an amendment to the amendment in the nature of a substitute? OK, seeing none, the uh question now occurs on the adoption of the amendment in the nature of a substitute to H R forty six fifteen. All those in favor say aye.

Aye. Aye.

All those opposed say no. In the opinion of the chair of the ayes have it, the amendment in the nature of a substitute to H R forty six fifteen is adopted. OK, the question now occurs on ordering H R forty six fifteen is amended to be reported favorably to the house. All those in favor say aye.

Aye. Aye.

All those opposed say no. In the opinion of the chair of the eyes have it, H R forty six fifteen as amended is agreed to.

Mister Chair.

Yes, sir. Mr. Speaker recognition.

Could I uh ask for a recorded vote?

Recorded vote is uh been requested, all roll call vote is ordered. Persuading to committee rule thirteen and rule eleven, further proceedings on this bill now are postponed. Committee now moves to uh consideration of H R ten three five five, the disaster loan outreach consistency act. introduced by Representative uh Mihaja and King-Hines. Uh, the clerk will report the bill.

H R one zero three five five, a bill to require.

Without objection, H R one O three five five is considered as read and open for amendment. I now recognize Representative Mihaja for the great state of New Jersey for a statement on the bill. OK, I now recognize, is she not here?

She's not here.

OK. I now recognize uh Delegate King Hines from the great Northern Mariana Islands for a statement on the bill.

Thank you, Mister Chairman and ranking member of Alaska's for your leadership and for the opportunity to speak on HR one zero three five five the disaster loan outreach consistency act which I am proud to co-lead with Representative Mejia. Mister Chairman, this legislation addresses a straightforward but consequential problem. Disaster survivors should receive receive consistent, accurate and current information about the assistance available to them, regardless of which SBA Field Operations Center handles their disaster. In the Northern Mariana Islands, we know firsthand how important timely disaster assistance is. Just this year, our communities were struck by two super typhoons and families and businesses across the Commonwealth are still recovering. SBA's two disaster field operations center play a critical role in communicating with survivors and explaining the disaster loan programs available to them. For many survivors, SBA's fact sheets, press releases and other outreach materials are their primary source of information about these programs. That information needs to be accurate and up to date. Unfortunately, a May twenty twenty-six GAO report found inconsistencies in SBA's disaster loan to outreach materials. Depending on which field operations center handled a disaster, some materials did not include updated information, including changes to mitigation loan limits and deadline extensions. Mister Chairman, survivors should not receive different answers simply because their disaster is handled by a different SBA field office. H R one zero three five five would require SBA to establish procedures to ensure it's a disaster outreach materials are consistent, accurate and current. The bill requires standardized templates, review and verification before materials are released and periodic reviews to ensure information remains up to date across both field operation centers. This is a common sense fix to ensure that disaster survivors get the information they need when they need it the most. I urge my colleagues to support this bipartisan legislation. Thank you, Mister Chairman. I yield back.

All right. Are there any other members who Are there any other members who wish to be recognized for a statement on the bill? OK. Uh, seeing none, I would like to recognize the ranking member to speak on the bill.

Thank you, Mister Chairman. When disaster strikes, and is striking more frequently than ever before, it is crucial that the victims have access to high-quality, up-to-date information about the resources available to them. But these government resources are not stagnant. They are updated to reflect the realities of the world we live in. When it comes to the disaster zone program, which provides long-term, low-interest loans to individuals, homeowners and businesses in the wake of catastrophe. We have recently seen several rule changes. For instance, in twenty twenty-three SBA updated the program to reflect cost of living increases, raising the home lending limits and extending the deferment period for repayment. The following year, FEMA updated their programs to remove the requirement that people apply for a disaster loan as a precondition for some types of individual assistance. This may sound minor, but they make a material difference for disaster victims. Unfortunately, the GAO recently found that not all victims were provided with full information about the rule changes. Specifically, some press releases contain different information depending on which part of the country you lived. As a result, people in the eastern US often had more information about increased loan limits or the FEMA application process than people in the western half of the US. The Disaster Loan Consistency Act seeks to qualify GAO recommendations that SBA establish a process to ensure all information disseminated in relation to the disaster loan program is current and consistent, no matter where you live. I want to thank Representative Mejia and Representative Kinheins for their work in bringing partisan common sense legislation forward. I urge my colleagues to vote yes. I yield back.

The gentlelady yields back, and I now recognize myself to speak on support of this legislation. I want to thank our colleagues, Miss Mejia and Miss King-Hines, for introducing this bill. Uh, one of the SBA's uh core missions is supporting uh men and women who keep America's small businesses up and running and when disaster strikes, the SBA's disaster loan program can help small businesses get back on their feet. A recent GAO report identified the opportunity to strengthen the SBA's disaster loan outreach, after the SBA updated its materials to reflect its twenty twenty-three rule and FEMA's twenty twenty-four rule GAO found that the information circulated varied across uh uh field operation centers. So the Disaster Loan Outreach Consistency Act promotes the consistent outreach across the SBA so small business owners have access to clear and accurate information and this bill strengthens the SBA's ability to deliver small businesses when disaster strikes. So I urge my colleagues to vote yes on one O three five five. And I've missed Mahea yet. Can we let her before we close out? No, she's not here.

Uh, she's

Give remarks? OK. Yeah, that's fine.

Yeah.

Uh, I urge my colleagues to vote yes on H R one O three five five and I deal back. Now, does, uh, any other member wish to offer an amendment? OK. Seeing none, the question now occurs ordering H R ten three five five, uh, reported favorably to the House. All those in favor say aye.

Aye.

All those opposed say no. In the opinion of the Chair of the Eyes have it, H R ten three five five is agreed to. OK, for what uh do we have uh King Heinz?

Yes, can I ask for a recorded vote, please?

Recor- recor- a recorded vote has been requested and a roll call vote is ordered, so persuadant to Committee Rule thirteen and House Rule eleven, uh further proceedings on this bill now are postponed. The committee now moves to consideration of H R one O three seven one, the insurance

H R one zero three seven one, thank you. H R one zero three seven one.

And without objection,

Thank you.

H R one O three seven one is considered as read and open for amendment. I now recognize Miss McIver from the great state of New Jersey to speak on this legislation.

Thank you, Chairman, for holding this mark-up today. I would like to speak in strong support of my bill, H R one O three seventy-one. the Insurance SBA implementation of GAO Recommendations Act of twenty twenty six, a common sense bill that I am proud to to lead alongside my ranking member Velasquez of New York. Veterans bring leadership, discipline, and valuable experience to our economy. After serving our country, many continue serving their communities by starting businesses, creating jobs, and investing in the neighborhoods they call home. The Small Business Administration has an important responsibility to ensure veteran entrepreneurs can access the federal programs and resources available to help their businesses succeed. Congress also needs a reliable information to determine whether those programs are actually reaching veteran business owners. That is why, more than twenty-five years ago, Congress required the SBA to submit an annual report on the needs of veteran-owned and service-disabled veteran owned small businesses. That report must explain how these businesses are using SBA programs, compare their participation with the broader small business community, provide information about federal contracts awarded to veteran owned businesses and recommend ways to improve their access to assistance. Unfortunately, unfortunately, the Government Accountability Office found that the SBA could not demonstrate that it had complied with the reporting requirement. Without complete and consistent reporting, Congress cannot properly evaluate whether veteran entrepreneurs are receiving the support they have earned or identify where the improvements are needed. My bill provides a straightforward solution. It gives the SBA's Office of Veterans Business Development sixty days to develop and implement policies and procedures ensuring that the agency complies with these existing reporting requirements. Better reporting will help us understand the challenges facing veteran and service disabled veteran entrepreneurs evaluate their access to SBA assistance and track federal contracting opportunities reaching their businesses our veterans have upheld their commitments to this country. The federal government must uphold its commitments to them. I urge my colleagues to support this common sense bill and help ensure that veteran business owners receive

the attention and support they deserve. With that, I yield back to you, Mr. Chairman.

Uh gentle lady yields back. Are there any other members who wish to be recognized for a statement? All right, seeing none, I would like to recognize the ranking member to speak on this bill.

Thank you, Mr. Chairman. I commend Miss MacIver for MacIver, sorry, for working on legislation to require SBA to close out a priority J J GAO recommendation. The Veterans Entrepreneurship and Small Business Development Act of nineteen ninety nine requires the SBA to submit an annual report to the House and Senate small business and veterans affairs committees on the needs of veteran-owned and service-disabled veteran-owned businesses. This is how we honor their service. The report must include pertinent information on the availability of SBA programs for veteran-owned businesses and offer ways to improve access to them. GAO found that the SBA's existing reporting did not include the requisite information, and it issued a priority recommendation that the SBA establish procedures to comply with the requirement. This is a straightforward recommendation for SBA to close out. and doing so will deliver an important benefit to veterans. Before SBA cuts staff and moves offices around, it should make sure it is getting the basics right. Closing out this recommendation within sixty days is a simple step that can make a meaningful difference for programs that benefit veterans. SBA currently has fifty-nine open GAO recommendations, fourteen of which are priority recommendations, it will be important for this committee to hold the agency accountable. And I ask for everyone to support this bill. I yield I yield back.

General, he yields back, I thank you for that, and now I recognize myself to speak in support of this legisl legislation. I want to thank our colleague, Miss McIver, from the great state of New Jersey, for introducing this bill. And as we said, back in ninety-nine, Congress asked the SBA to give Congress a clear picture of how SBA programs are serving veteran entrepreneurs, including contracting opportunities and ways to strengthen support. The SBA already provides much of this information to its existing reports. A a twenty twenty three GAO report found that those reports did not fully line up with the specific reporting requirements that Congress had established. So this bill builds on the SBA's existing reporting efforts by making those requirements clearer and easier to follow. So what Congress can continue getting a consistent picture of how the SBA is supporting veteran small business owners and With that, I urge my colleagues to vote yes on H R ten three seven one. I yield back. Does any member wish to offer an amendment? Seeing none, the question now occurs on ordering H R one O three seven one reported favorably to the House all those in favor say aye all those opposed say no. Depending the chair of the ayes have it,

Mister Chair.

H R ten thir- may as agreed to.

Mister Chairman.

For what purpose does the gentleman uh seek recognition?

I ask for a recorded vote.

Recorded vote has been requested, a roll call vote is ordered, and persuad-

H R one zero three five three, able to amend. H R one zero three five three, able to amend.

Without objection, H R one O three five three is considered as read and open for amendment. I now recognize Mister Finstead from the great state of Minnesota, to speak on this legislation.

Thank you, Chairman Williams. I rise today in support of my bill, HR one zero three five three, the SBIC Reporting Modernization Act of twenty twenty six. I am proud to lead this bipartisan effort with Representative Morrison. Small business investment companies play a vital role in helping entrepreneurs and small business owners access the capital they need to start and grow their businesses. To make sure this program is working properly, Congress and the American people need timely and clear information about program's performance. That is exactly what my bill does. It requires the SBA to publish quarterly reports on the performance of the SBIC program, including licensing information, the number of jobs created or sustained through SBIC investments, and it improves reporting measures to improve congressional oversight of this program. This is common sense and bipartisan, this is a common sense and bipartisan effort to improve transparency and accountability, while making sure small businesses have the access to capital they need.

Yeah.

I appreciate the committee's consideration of this bill and I urge my colleagues to support it. Thank you, Mr. Chair, and I yield back.

I now recognize uh Doctor Morrison from the great state of Minnesota to speak on this legislation.

Thank you, Mr. Chairman, it's my honor to co-lead on this important bipartisan legislation. Access to capital is crucial for day-to-day business operations as well as fueling the long-term growth of small businesses. However, obtaining capital is a challenge, especially for small businesses. That's why the Small Business Administration, Small Business Investment Company program is such a vital tool for helping small businesses access private capital. But to ensure the integrity of the program, Congress must have access to accurate and up-to-date information about the number of licenses, applicants, and jobs created through the program. Unfortunately, over during the past couple of years, SBA has stopped providing this information to Congress. Given the many changes made by this administration that have harmed small businesses, congressional oversight has never been more important. That's why I urge my colleagues to support the SBIC Reporting Modernization Act, which will require the Small Business Administration to publish quarterly reports on the performance of the SBIC program, ensuring Congress is able to develop solutions to problems as they arise. Thank you, Mister Chair, and I yield back.

Uh, gentle lady yields back. Is there any other member who wishes to r- be recognized for a statement?

Chairman, uh.

You're recognized, Miss Mahalia, from the great state of New Jersey.

Thank you. I want to first say that I I hope that all of my colleagues vote yes on this bill, the the need to ensure that our small businesses, our entrepreneurs have accurate information, have access to the resources that our government is offering, um rightfully. uh to ensure that our small businesses and our economies grow is critical and important. I also wanna pivot and uh give uh just a little plug for um uh my the bill I. I'm also introducing H R ten three five five, the disaster loan outreach consistency act, similar to the bill that we were just speaking to. It is critical and important that in in moments of severe weather small businesses um have the access to information that they need in order to navigate critical and difficult moments it is the SBA's responsibility to make sure that these programs are regularly updated and that accurate information actually reaches business owners recently as recently as um this summer the SBA and FEMA have have worked together to expand these disaster loans and make them easier However, this information is still not reaching the people that we are committed to serve. It is deeply troubling that the SBA has failed in what I believe is a basic duty. Every year about three thousand small businesses rely on on disaster relief loans, and that means that thousands of owners are trying to recover and rebuild without the most up-to-date information. I will say that in New Jersey nearly ninety-nine percent of all s- uh businesses are small businesses. particularly true in my district of New Jersey's eleventh congressional, and over one million owners are consistently threatened by severe storms and floods. Again, because of SBA's oversight, owners who just lived through a recent summer storm don't have current information to rebuild. So again, with nearly ninety-nine percent of businesses in New Jersey impacted by what we do in this chamber and what we do um in in uh Washington DC, I I have introduced a bipartisan disaster loan outreach consistency act with my colleague representative Kimberly King-Hines who I wish to recognize for their leadership. This bill offers a simple solution by requiring the SPA establish clear standard rules so that disaster information is accurate and consistent. And with that I yield.

Are there any other members, uh gentle lady yields back, that's a pretty good plug that she went back and read.

You know, Jersey.

Uh, are there any other members who wish to be recognized for a statement? Seeing none, I'd like to recognize the ranking members to speak on the bill.

Thank you, Mr. Chairman. I would like to thank representatives Finstead and Doctor Morrison for their bipartisan work on this bill. Timely information from the SBA is key to ensuring the effective operation of the SBIC program. In order for this committee to carry out oversight, we need the latest data regarding program operation. In fact, the SBA is required by statute to provide a full and detailed description of the SB SBI C program in its annual report to Congress. We need to know. Historically, the SBA has published quarterly updates on SBICs.

Mm.

Unfortunately, Despite my urging, the SBA has not issued any complete report since fiscal year twenty twenty-four. This legislation will require the SBA to publish quarterly reports. This report will detail important information including data on SBIC licenses, the ventures issued under the program, and the jobs created and through SBIC investment in small businesses. The SBA has already provided much of this data in the past. Requiring this report will ensure that Congress has the up-to-date figures to monitor and address challenges in the SBIC program as they arise. SBICs play a key role in providing small businesses with the capital they need to succeed. It is our responsibility to support effective operation of this program, and take steps to get the data we need to oversee it. The bill is supported by the Small Business Investor Alliance. Thank you to Representative Finstad and Doctor For- Morrison for developing this legislation. I urge my colleagues to support it, and I give back.

Uh, gentle radio's back, I now recognize myself to speak on the bill. I wanna also thank our colleagues, Mister Fenstead and Doctor Morrison from the great state of Minnesota, two of them, for introducing this bill. The SBA small business investment company program is one way to help America businesses get the capital they need to grow. In fiscal year twenty twenty-five alone, SBIC funds closed with a record fifty-three billion dollars in combined private capital and SBA backed uh leverage. Uh, the bill, Bill's on w- on that success by giving Congress a more regular look at how the program is performing and instead of waiting for an annual report, The SBA would provide quarterly updates on licensing, capital deployed, and jobs created or sustained. That means better information, better oversight, and better ability to keep doing what's working. This bill makes an already s- successful program even stronger and ensures we have the information we need to keep delivering for American small businesses. So I too urge my colleagues to vote yes on HR ten three five three and I yield back. Does any member wish to offer an amendment? Okay, seeing none, the question now occurs in ordering H R one O three five three reported failably to the house all those in favor say aye all those opposed say no.

Aye. Aye.

In the opinion of the chair of the ayes have it H R one O three five three yes sir.

Mr. Chairman? Can I ask for a recorded vote?

We've had a recorded vote requested. And uh a roll call vote will be is ordered so persuadant to committee rule thirteen and rule eleven, house rule eleven further proceedings on this bill are postponed. Committee now moves to consideration of H R O one O three five two, the five O four loan program or flexibility act, introduced by Representative Simon and Alford. Uh, the clerk will report the bill.

H R one zero three five two, a bill to amend.

Without objection, H R one O three five two is considered as read and open for amendment. I now recognize Miss Simon from the great state of California to speak on this legislation.

Well, thank you, Chair, and thank you to ranking member. Velasquez, and I wanna thank Congressman Alford for co-leading this bipartisan bill alongside me. And I'm proud to speak in support of the five O four program, Level Flexibility Act. Now, we all know that the cost of doing business continues to go up, day by day. And for small businesses, that can mean it's harder to invest, it's harder to grow, and it's harder to compete. The SBA five O four loan program helps entrepreneurs finance major assets such as land and property and much needed equipment. And when demand for five O four loans reaches its authorized limit, the program shuts down. That means when a small business needs help the most, like during a recession or as we can recall during a pandemic, they could be locked out of financing. My bill, our bill, gives the SBA flexibility to keep this financing accessible. It allows for SBA to increase the five O four programs authorization limit up to fifteen percent once per fiscal year and importantly, this flexibility already exists for the seven A loan program. This bipartisan legislation simply brings five O four loan program standards up to parity. By giving the SBA the ability to adapt to to loan demand in real time, uh we can and we will help small businesses keep their doors open, make much needed investments, create jobs, even when economic conditions are tough, like right now. I urge all of my colleagues to support this legislation and I wanna thank my colleague from across the aisle for his co-authorship. Thank you, sir, Chairman, I yield back.